Odaily Planet Daily reported that Hong Kong's "Stablecoin Bill" officially came into effect on August 1. This is to establish a licensing system for fiat currency stablecoin issuers in Hong Kong, improve the regulatory framework for virtual asset activities in Hong Kong, so as to maintain financial stability and promote financial innovation.

Upon implementation of the Stablecoin Ordinance, any person who, in the course of their business, issues a fiat-denominated stablecoin in Hong Kong, or a fiat-denominated stablecoin purportedly pegged to the Hong Kong dollar in Hong Kong or abroad, must apply for a licence from the Monetary Authority. Such persons must comply with requirements for reserve asset management and redemption, including proper segregation of client assets, maintaining a robust stability mechanism, and processing redemption requests from stablecoin holders at par under reasonable conditions.

Relevant persons must also comply with a series of requirements for combating money laundering and terrorist financing, risk management, disclosure requirements, auditing, and proper personnel. The Monetary Authority will conduct further consultations on the detailed regulatory requirements of the system in due course. ( CCTV News )